What is happening to pharmacy chains? Walgreens is the latest to pull back in Tacoma
Another national pharmacy chain has announced plans for the closure of one of its Tacoma sites, blaming a market “oversaturation” of its brand.
Add it to the list of national retail chain pharmacies reinventing, reducing their number of stores and/or some combination of both.
Representatives for Deerfield, Illinois-based Walgreens confirmed in response to questions this week from The News Tribune that the chain is closing its store at 5602 Pacific Ave. in Tacoma, which primarily serves customers in the South End and Eastside neighborhoods.
The store’s closing date is April 10.
In a statement sent by the drugstore’s communications team, it stated multiple factors contributed to the closure, “including our existing footprint of stores, dynamics of the local market, and changes in the buying habits of our patients and customers, among other reasons.”
It added, ”This location’s closure is primarily due to an oversaturated footprint in the area, leading to unsustainable business performance.”
Existing customers’ prescriptions are to be transferred to the Walgreens at 3737 Pacific Ave., but the company says it also will help in making transfers to other Walgreens locations if preferred.
Walgreens says it also will offer “free one-to-two day delivery for eligible prescriptions for 90 days,” as well as “same day delivery — free for over $35 for front-end products.”
Walgreens’ website lists around 100 storefronts in the Puget Sound-Kitsap Peninsula region. Last year, it announced it would close 150 U.S. stores by August of this year.
Other pharmacies, including Seattle-based Bartell Drugs and its parent company Rite Aid, previously announced closures in the Puget Sound region.
Rite Aid filed for bankruptcy protection in October amid opioid prescription-related lawsuits and other issues. Rite Aid has shuttered dozens of stores nationwide since last fall, including the Rite Aid at 15801 Pacific Ave. in the Tacoma-Spanaway area.
CNBC reported in January that shares of Walgreens dropped 30% last year as it faced lower demand for COVID products, low pharmacy reimbursement rates, more online retail competition and “an uneven push into health care and a challenging macroeconomic environment,” among other issues. It cut its quarterly dividend almost by half in January to reinvest in its core business, after nearly half a century of consecutive annual increases.
Across the national pharmacy spectrum, similar issues persist.
Workforce hiring challenges along with financial strains in the pharmaceutical industry and a hobbled U.S. medical system in general have added pressure to national chains as they struggle to take on more services, such as developing new clinics.
Reducing store numbers has become a key strategy to shore up finances in those efforts.
Adding mini-urgent care services isn’t all that retailers are doing to attract new customers.
Familiar mall retailer Claire’s announced this week that Walgreens will dedicate space in its stores to add its merchandise, which is focused on jewelry, hair accessories and cosmetics.
